Chinese construction equipment will play in the U.S. market. We’ve talked to enough of the majors and know their commitment. We know that mainstream fleets will consider Chinese brands.
Now, a report from Morningstar Institutional Equity Research substantiates what we have seen and heard this year. In fact, Morningstar cites three areas that give established manufacturers a “moat” around the U.S. market that must be overcome by the Chinese: product quality, dealer network strength, a captive financing arm.
Here is an update on how some of the major Chinese firms stand in their approach to the U.S. construction equipment market.
- Sany has been adding dealers all year, and its parent recently announced plans to boost investment in its excavator group. The company stands on its international reputation for product quality.
- LiuGong is continuing its push for U.S. dealers. It has partnerships with Cummins, which enhances its product quality story with a respected international component supplier.
- XCMG has one dealer in the United States.
- Zoomlion has one dealer in the United States.
- SDLG, which is owned by Volvo and is being marketed as a “reliable value-priced product,” has 11 North American dealers with 51 locations.